Annual Report Arnhem Land JV Project EL 5893, EL 24017, EL 25064, EL 25065 and EL 27059, 16 March 2017 to 15 March 2018

Abstract

This report summarises the exploration completed on the five licences comprising the King River and Wellington Range JV Project area during the third year of the joint venture (JV). EL 25064 and EL 25065 were granted on 5 July 2011 for an initial period of four years. Following the completion of the initial period of tenure applications for two year extensions of term may be submitted. A two year extension of term was granted in November 2015, extending the grant period until 3 July 2017. A second two year extension of term was granted in July 2017, extending the grant period until 4 July 2019. EL 25064 comprises 96 blocks with an area of 292.18 km2 and EL 25065 comprises 204 blocks with an area of 656.53 km2. EL 24017 and EL 27059 were granted on 3 September 2010 for an initial period of six years. Following the completion of the initial period of tenure applications for two year extensions of term may be submitted. Cameco, on behalf of the joint venture, applied for a two year extension prior to 2 September 2016. This two year renewal was approved in October 2016, extending the grant period to 2 September 2018. EL 24017 consists of 5 blocks with a total area of 15.66 km2. EL 27059 consists of 4 blocks with a total area of 8.3 km2. EL 5893 was granted on 5 May 2004 for an initial period of six years. Following the completion of the initial period of tenure applications for two year extensions of term may be submitted. Two year extensions of term were granted in February 2010, October 2012, and October 2014 extending the grant period to 4 May 2016. Cameco, on behalf of the joint venture, applied for another two year extension prior to 3 May 2016. The two year renewal was approved, extending the grant period to 3 May 2018. Upon granting, the total area under licence was 269 blocks for 856.4 km2 of which 378.8 km2 (44%) was excluded from exploration by the Northern Land Council. On 9 February 2015, Cameco Australia Pty Ltd entered a joint venture with Rio Tinto Exploration Pty Ltd (RTX). Under the terms of the joint venture (JV) agreement, RTX may earn an interest in all five tenements through meeting certain expenditure requirements. Under the terms of the JV Cameco was the manager and was tasked with performing all exploration activities on the tenements on behalf of the JV partners. During the 2017 exploration period Cameco, on behalf of the JV, explored for unconformity hosted uranium mineralisation within EL 5893. The exploration activities included the completion of a ground gravity survey, geological mapping and surface geochemical (termitaria and rockchip) sampling. All of these activities were non-ground disturbing. No field work was completed on EL 25064, EL 25065, EL 27059 or EL 24017 during the 2017 exploration period. On the 27 February 2017, RTX provided Cameco with an optional dilution notice and that it did not wish to contribute to the Joint Venture expenditure from that point onwards. In late May 2017, Cameco kick-started a divestment of its exploration projects in Australia and invited potentially interested parties to participate in that divestment through a competitive bidding process. On 1 March 2018, Vimy resources announced that it had entered into a binding sale agreement with Cameco to acquire its share of exploration assets in northern Arnhem Land, including those comprising the Wellington Range-King River project, for a cash consideration of A$6.5M staged over 30 months.